References. 49 Consider the example in Section 3.3 but now assume that the market rate of interest is 10%. Graphically show the operating plan for the following two transformation curves: 3K, + 2K = 30 b. (K, +1) + K} = 21 Using the transformation curve in part b, find the firm's optimal financing decision if the firm's initial resources at time I is: (c. 5 d. (e. Find the optimal consumption decision assuming the transformation curve in part b and further assuming that the only owner of the firm has the following utility function: (K,,Kz) K,K!! References. 49 Consider the example in Section 3.3 but now assume that the market rate of interest is 10%. Graphically show the operating plan for the following two transformation curves: 3K, + 2K = 30 b. (K, +1) + K} = 21 Using the transformation curve in part b, find the firm's optimal financing decision if the firm's initial resources at time I is: (c. 5 d. (e. Find the optimal consumption decision assuming the transformation curve in part b and further assuming that the only owner of the firm has the following utility function: (K,,Kz) K,K